All Forum Posts by: Stephen Flynt

I am considering investing funds from a Self Directed IRA into an LLC which will be developing raw land and constructing townhomes. My IRA would own less than 50% of the LLC (perhaps 15-25% at most). Could my wife or myself receive compensation from the LLC (such as employment by the LLC supervising construction, or receiving commissions for selling the townhomes), or would this be considered Self Dealing?

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@Collin Hays very interesting, thank you for the information

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@Curt Smith so you don't like equity trust, do you have a custodian you do like? I'm also in the Atlanta area and wondering if you have found anyone local.

"You now have a golden op remove your past employees 491k to a self directed IRA (please don't consider equity trust) and invest"

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Okay what is "rent-shifting"?

Originally posted by @Collin Hays:

While the Gatlinburg area has risen, ultimately it is all about the net yield. I paid $275K for a 900 square foot cabin in Gatlinburg last summer. That’s over $300 psf!

But the rent supports that price: The gross rents were $34,000 from July through December.

The key is finding a management company in the area that isn’t rent-shifting. This practice is killing homeowners.

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Anyone use Stessa? I'm not a PM, as a self managing owner I use it for my LTR, and find it very easy to use. You can print a tax report at the end of the year for each property. I don't know why it wouldn't work for STR as well, but I do not have any STR experience with it (I am looking to diversify into STR currently).

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Originally posted by @Isaac Johnson:

My personal finance teacher is using the Dave Ramsey course and doesn’t agree with me that real estate is a good investment. Instead he teaches that stocks will make you a millionaire no matter what even if you don’t know what you’re doing, there is never a good reason to go into debt, and because Dave Ramsey went broke trying to invest in RE (which what he was doing was very dumb by the way). But these stocks have been around for what 10-20 years? Who knows if they will even be existent in the next few years?!? Shelter has been number one priority for all people before us, and will be after us. And land can’t be made anymore.

What was Dave Ramsey doing in his REI that was dumb? I have listened to him a few times but never heard him go into detail about his past in regards to REI.

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Originally posted by @Ola Dantis:

Originally posted by @Stephen Flynt:

Originally posted by @James Teutschmann:

@Ola Dantis If rental properties are "the get rich slow game" then using the extra rental income to pay down the principal changes the game to "the get rich in 60 years game". I guess it all depends on your goals with the cash flow as you said. I do like the idea of having more equity in the property to use as a HELOC later.

Keep in mind when it comes to HELOC's, that they can and will be cancelled in a recession. I found that out in 2008! I recommend that rather than paying down a mortgage, to set that money aside, because it will do you more good in your bank account when things get bad than having equity in a house that you can't get out. You also may find in a downturn that the equity you thought you had isn't really as much as you had planned for if the value of the property declines.

Good point, however, what if there isn't a recession or if the property doesn't plunge in the recession?

2 sides to take into account (no pun intended).

I simply like the flexibility of cash in the bank ready to deploy as opportunities come up as well as available for handling emergencies.

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All Forum Posts by: Stephen Flynt

Stephen Flynt has started 6 posts and replied 40 times.

Post: New Member Introduction

Post: Cross country mortgage bank

Post: Self Directed IRA - Question About Self Dealing

Post: Self Directed IRA - Question About Self Dealing

Post: Gatlinburg area 2br vs 4/5/6br

Post: My wife was laid-off today. 3 lessons.

Post: Gatlinburg area 2br vs 4/5/6br

Post: Vacation Rental Bookkeeping

Post: REAL ESTATE IS BETTER THAN STOCKS!

Post: Should I pay down rental property?